U.S. Geothermal unit closes $20 million debt facility from Prudential

By Wendy Van Sickle

Columbus, Ohio, May 19 – U.S. Geothermal Inc.’s wholly owned subsidiary, Idaho USG Holdings LLC, closed on a $20 million debt facility from Prudential Capital Group, according to a Thursday press release.

The financing agreement allows Idaho USG to expand the debt facility up to a total of $50 million over the next two years.

The initial $20 million loan has a fixed interest rate of 5.8%.

The loan principal amortizes over 20 years, with a seven-year term. Principal and interest payments are to be made semiannually.

Proceeds will fund capital expenditures, pay off an existing 7% interest loan of about $1 million, increase the output at existing facilities, advance the development of the company’s existing project pipeline, pursue strategic acquisitions and fund general corporate purposes.

The loan is collateralized with Idaho USG’s ownership interest in the Neal Hot Springs and Raft River projects. The 22 MW Neal Hot Springs project is owned 60% by the Idaho USG and 40% by Enbridge. The 13 MW Raft River project is owned 95% by the Idaho USG and 5% by Goldman Sachs.

U.S. Geothermal is a Boise, Idaho-based renewable energy development company operating geothermal power plants.

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